warehouse

Opportunities in Warehouse Investment in India

Real Estate

India’s industrial and warehouse sectors have attracted a total investment of more than Rs. 25k crores according to The Economic Times. With its robust demand for logistics, this amount is estimated to double in 2021. It is various global and domestic institutions that are taken in well-calculated interest in being the first to begin Warehouse Investment in India.

As e-commerce picks up in India, a larger population has acquired smartphones, access to the internet, and digital literacy. Since Covid, we have seen a sharp increase in people that rely on e-commerce platforms for their needs. This demand for goods is now at an unprecedented high. To provide quickly and efficiently, the smarter e-commerce companies have begun to lease warehouse investment properties closer to cities. They can now deliver on time, with minimised travel costs, risk of damage, and turnaround time. 

The Advantages of Pre Leased Warehouse Investment

  1. Warehouse tenants have predominantly established business owners. They usually plan to occupy properties from 9 to 15 years. They lease at a low cost, but provide property owners with a high occupancy rate, making it a stable investment. 
  2. Compared to commercial real estate, warehouse construction costs are significantly lower. An average warehouse can set up within 6 months, whereas an office building with only the basic requirements can take up to 3 years!
  3. Since the time taken to build a warehouse is shorter, the monetization cycle from the time of construction till the time you start receiving rental earnings yields fruit far quicker. This makes it a perfect investment solution for those that want long-term security without great risk. 

The Disadvantages of Pre Leased Warehouse Investment 

  • Warehouse investments in India have a lower appreciation potential than office spaces. However, this comparison does not take into consideration the fact that office spaces are located in urban areas and warehouses in the suburbs. 
  1. Those that put up pre-leased warehouses for sale can find it challenging to find new tenants since previous tenants had different requirements and the warehouse had to be adapted to meet those. Having said that, this might be true for any type of property.
  2. Warehouse real estate investment might require additional investment to upgrade the value of property to make it more appealing. Sometimes, safety facilities need to set up for a safe work environment. 

Warehouse business opportunity

Investment in warehousing in India comes with the benefit of a more stable rental consistency as opposed to investing in office spaces. Myre goes the extra mile to find the best warehouse business opportunities. We stand behind our investors and support them to the fullest during the asset selection process to carefully select one that best suits their needs and capacities. 

The Myre advantage is that we evaluate every opportunity. A thorough research process means you get a complete risk profile, giving you the flexibility to choose at your comfort level. 

Requirements for working with MYRE Capital

Real estate is a stable asset that does not fluctuate in value too often. This makes it a great investment. We help you avoid any short-term capital tax implications which can rise more than 30% in a shorter time frame and eat away most of your returns. Our services thus come with a minimum lock-in period of 1 year through our platform. 

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